On Monday, the NZD/USD struggled, losing 0.30% to 0.6125, erasing its daily gains. Despite this, the pair successfully defended its position above the 20-day Simple Moving Average (SMA) support level at 0.6120, a feat securely achieved in the past week.
As for the daily technical indicators, the Relative Strength Index (RSI) now stands at 53, showing a downward movement, indicating that the bullish momentum took a slight hit. The Moving Average Convergence Divergence (MACD) keeps on printing decreasing red bars, noting the fading bearish strength.
From the perspective of resistances, the 0.6170 level is the immediate challenge, which is trailed closely by the significant 0.6200 mark. A firm break above these levels can be viewed as a full confirmation of the recent bullish momentum, taking the pair deeper into bullish territory.
Ahead lies immediate support near the 20-day SMA at 0.6120, with stronger support at the decisive 0.6070 mark. If the sellers manage to lower the price below these supports, it will indicate a developing selling pressure that could lead to a deeper corrective decline.